New Mexico HUD Housing Block Grant Programs

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For Rural New Mexico Communities

The HOME Investment Partnerships Program is the largest federal block grant to state and metropolitan local governments designed exclusively to create affordable housing for low-income households. A block grant is a federal grant made by formula every year, so that grantees are given discretion to undertake specific activities. For areas outside of Albuquerque and Las Cruces, HUD provides HOME block grant funds to the New Mexico Mortgage Finance Authority. The state, in turn, makes these funds available to rural New Mexico applicants on a competitive basis.

HOME Funding is determined by a formula based on need as determined by US Census data released every 10 years. In 2002, rural New Mexico received $7.0 million. In 2003, rural New Mexico is expected to receive approximately $7.6 million.

Funding from the HOME Investment Partnerships Program can be used for homeowner and rental housing development, as well as owner-occupied housing rehabilitation. The state also combines its HOME funds with state funding to provide additional resources to applicants on a competitive basis. Rural local and county governments, nonprofit organizations, for profit agencies and tribal entities can apply to the state for funding. By federal law, 15 percent of HOME funding is set aside for Community Housing Development Organizations, which are nonprofits created especially to undertake housing development.

HUD also provides block grant funds through the state to prevent homelessness and to assist persons with HIV/ AIDS through the HUD Special Needs Assistance Programs. The state runs a tenant based rental assistance program, a single-family development program and a lead-based paint abatement program. Some of the programs are funded on a continuous basis, while others are due in January. For more information, about these programs, contact the New Mexico Mortgage Finance Authority.